I have always kept an eye on the financial reports at Villa. These reflect the true state of the situation at the club and any move could be significant.

Today, Reform Acquisitions Ltd, which is the vehicle Lerner uses to own the club, posted what I think could be a significant change. They have changed their memorandum of associations to remove the restriction on authorised share capital.

Now this could mean nothing at all or it could mean a lot. I have asked an accountant to comment on this but maybe some time before he replies so I am asking the wider community if this is significant.

I do think any move of this type is not done for a simple move but would have a meaning behind it. It could be the lifting of this restrictions allows Randy to swap some shares for debt (not a bad thing) or it could allow for other investment (also not a bad thing).

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37 Comments

Sorry to piss everyone off but i don’t care if he sells to red bull or whatever,I just want money,stupid amounts to be spent on the club,£500 million to start with,sort the north stand out and buy world class players and pay them the wage they want,I fed up of watching little clubs like man shity and Chelsea in the champions leauge ,fuck off and let a proper club have a go,I don’t care what redbull do to us to show us the ££££’s

If only we could get Red Bull, life is too short, I’d love to see it personally. Just someone with a bit of ambition to succeed, this whole Lerner-Lamberk era is draining the energy out of the club. We need some exciting news badly.

i’m an accountant (granted not a very good one) but this just looks like a move to help issue more shares, which would improve the company’s capital gearing ratio. Gearing ratio is the proportion of the company that is financed by debt (D) compared to equity(E) (the equation is usually D/D+E). Companies normally prefer to have a low gearing ratio (ie. lower proportion of debt to equity) because debt is seen as a riskier source of finance due to the fact that you have to pay fixed costs on it (interest payments in the form of x% each period) whereas with equity you have the option to choose when to pay costs (in the form of dividends to shareholders). Apologies if I’ve lost you…but basically they’re just trying to reduce the financial risk of the company!

Kun,
I’d totally agree with that assessment if it was a normal company.
But Randy and the trust only owe money to themselves, so there is no increased perception of risk, to my mind.
I’d thought of gearing, but it would only matter to an outsider, imo.
And I didn’t see any tax benefits, but wasn’t sure.

Hence my immediate guess that perhaps Randy might be looking for investment, but it’s more likely he’s just leaving his options open.

Randy Lerner allowed Martin O’Neill complete control. As a result of Lerner’s naivety, 11 Players were allowed to accumulate who hardly ever got a game. Lerner then realised he would need to invest more time in the club which he did not want to do and appears to have lost interest. I hope that we get new owners who want to get involved. Who understand what is needed to compete.
Would Tottenham have Lambert on there target list? Same size club as us. So why not? If you want to compete you need a manager who not only inspires but who can attract the players by his reputation. We are where we are because of who we appoint. We were ahead of Tottenham so compare their managerial appointments with ours and you will see the difference between a club who can compete because they have supporters and a board who aim high, At Villa our supporters actually believe that Lambert is doing OK or should be given time. MCleish had more experience than Lambert so the Villa supporters showed a remarkable lack of knowledge when criticising his appointment as an ex Blues manager. It was his credibility and Lamberts that was wrong as would be similar ilk of MCarthy, Mark Hughes, Sam Allardyce. I reckon Villas-Boas made a mistake by signing too many players in one go. He won’t have that problem at Vila (!) but I would stake everything and say even with the same resources he would bring in a better quality player and give us an attractive team. Unfortunately Lerner seems as oblivious to what style of manager we need as a lot of the supporters are. Roll on new owners, the best Christmas resent ever!

Avbs problem was that levy signed 3 players he didn’t want. Having said that their performance v Liverpool last week was the worst iv ever seen in prem even worse than our 8.0 hammering last year. As iv said before at worse am is as good as lambert. Villa fans would of wanted Mckeish out even if he won us the league. The club have gone backwards and are on a downward slide. Take out the fluky wins v city and saints and we would be bottom 3 now.

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